Interest Rate Cuts Are Here, Is Liquidity on the Way?
Jerome Powell just dropped a real deep-water bomb: the Federal Reserve will purchase $40 billion in government bonds in the next 30 days.
Listen carefully, this is not a normal operation. When a central bank wants to fight inflation, it doesn't do this. This is precisely what it does when it wants to pump liquidity into the market.
Liquidity is the lifeblood of cryptocurrencies. Especially those high-beta, resilient altcoins.
What does this mean? Bigger things are coming.
Liquidity is making a comeback in the market.
Why is this purchase a silent thunder?
"The reserve balance is too low" — admitted by the Federal Reserve itself. A low reserve triggers government bond purchases. When reserves increase, risk assets follow suit.